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help! cont Department Allocations In drvisional income statements prepared for Demopolis Company, the Payroll Department costs are charged back to user divisions on the basis
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cont Department Allocations In drvisional income statements prepared for Demopolis Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are charged back on the bosrs of the number of purchase requisitions. The Payroll Department had expenses of $37,128, and the Purchasing Department had expenses of $15,370 for the year. The following annual data for Residential. Commercial, and Government Contract divisions were obtained from corporate records: Requiredt a. Determine the total amount of payroll checks and purchase requisitions processed per year by the compony and each division. b. Using the cost driver information in (a), determine the ancual amount of payroll and purchasing costs allocated to the Residential, Commercial, and Goyernment Contract divisions from Doyroll and purchasing services. Do not round interim calculations. Round vour answers to two decimal b. Using the cost driver information in (o), determine the annual amount of payroll and purchasing costs allocated to the Residential, Commercial, and Government Contract divisions from poyroll and purchasing services. Do not round interim calculations. Round your answers to two decimal places. Support department allocation rates: Payroll Department per distribution Purchasing Department per requisition c. Residential's support department allocations are than the other two divisions because Residential is a user of support department services. Residential has many employees on a weekly payrol, which translates into a transactions Step by Step Solution
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